Compare electricity rates in Texas

Texas energy deregulation began in 2002, ending the monopoly utility companies had over their service areas. Utilities stopped selling electricity to consumers and instead focused on delivery and maintenance. Meanwhile, independent electric providers began to sell electricity to consumers at competitive rates. Natural gas choice is not an option for residential customers.

Today there are many Retail Electric Providers, or REPs, to choose from, which benefits consumers across the state. Consider the latest statistics:

• Texas residential electricity rates are 10 percent lower than the national average.
• Commercial electricity rates are nearly 23 percent lower than the national average.
• Industrial electricity rates are almost 16 percent lower than the national average.
• Texas generates (by far) the most electricity of any state from wind.
• Texas generates the second-highest amount of electricity from solar energy.

You must select a REP if you live in a deregulated area. If you need help on selecting a provider, our energy experts can recommend a provider based on your home size and energy usage. Certain parts of Texas, such as Austin, do not have the power to choose, which means your electricity is automatically provided by the utility in your area. The electric utilities in Texas are overseen by The Public Utility Commission of Texas (PUC). The PUC also manages telecom, water, and sewer utilities throughout the state.

Ready to shop for cheap Texas electric rates? Enter your ZIP code above to get started. Otherwise, keep reading to learn what to expect during the buying process and a more detailed look at your area.

The most common types of electricity plans in Texas are fixed- and variable-rate plans. Here’s what you can generally expect from these plans:

• Fixed-rate electricity plans give customers the most stability for their monthly energy bills. Your rate will not change for the duration of your contract, so you’re protected from market highs and lows. The only variables are usage and any government fees or taxes.
• Variable-rate electricity plans have rates that fluctuate depending on market electricity prices. You might see your bill go up sharply when energy is in high demand.

Think of fixed and variable rates like you would an investment strategy, where fixed-rate plans are more stable bonds, and variable-rate plans are aggressive stocks. The type of plan you choose depends on your risk tolerance and your needs.

Deregulated energy providers also offer renewable energy, prepaid electricity plans, and no deposit options. Some providers offer energy deals and promotions. You can, however, opt not to select an energy provider. In that case, your utility will provide your electricity. Many people like to shop for their REP to keep their bills low. If your electricity bill is too high, check out these tips on how to reduce your electric bill.

For more detailed information and help picking the plan that suits you, please see our energy buying guide.

Texas businesses also have the power to choose their energy provider. Nearly 3 million businesses in deregulated areas across the U.S. have taken advantage of cheap electric rates, competitive plans, and renewable energy options.

Choose Energy can build a custom quote tailored to businesses of all sizes. To speak with one of our energy experts about your Texas business energy plan, call 844-321-7462 or visit our business energy page.

If you are moving in Texas, you can keep your energy plan with your current provider if it offers service at your new address. Or switch to a new provider without paying an early termination fee by showing proof of change of address. It’s a good idea to begin shopping for a new energy plan up to 90 days ahead of time. All you will need to do is select your move-in date when you sign up and your provider will handle the rest.

Most Texas homes have smart meters installed, which means you will not need to schedule a technician visit to begin service. Instead, your new provider will activate your service remotely on the move-in date you select.

Choose Energy works with trusted providers in Texas, including TXU Energy, Direct Energy, and Reliant Energy. Our free marketplace allows you to find and compare affordable rates and reliable plans from top energy providers in the market.

To learn more about moving your Texas electricity service, see our resource page for Texas movers.

Changing energy providers is easier than it may seem. Just enter your ZIP code above and Choose Energy will show you available plans in your area. Filter through rates, plans, and providers to find the best choice to fit your energy needs. Once you’ve found the right plan, you can enroll quickly and easily through Choose Energy.

Before you switch, check your Electricity Facts Label (EFL) to see if your contract has an early termination fee. If it does, you may need to pay that fee to end your contract before it expires. However, that fee is waived if you switch within 14 days of your contract ending.

After you’ve signed up for your new energy plan, your work is done. Choose Energy will communicate with your previous provider about the switch. Your current provider will then coordinate with your new energy provider to switch over your electric service. Again, most Texas homes have smart meters installed, so your new provider should be able to make the switch without sending a technician to your home.

For further details on switching to a new Texas energy plan, visit our guide for Texas switchers.

Texas leads the nation in renewable energy. The Lone Star State produces the most wind energy in the U.S. and is one of the top producers of solar power. Most Texas energy providers offer green electricity plans powered by sources like wind and solar energy.

Choose Energy works with top renewable energy companies in Texas, including Gexa Energy, Green Mountain Energy, and Chariot Energy. With the Choose Energy marketplace, you can easily filter to see green energy plans available in your area.

Enter your ZIP code above and filter for green energy to learn more about the available renewable energy plans in your area.

When signing up for an energy plan, you may need to pay a deposit. Every energy provider on the market has a certain credit threshold. If your credit score falls below that threshold, the provider will require a deposit before starting service.

If paying a deposit is not an option for you, Choose Energy can help you find a cheap, no-deposit electric plan. Many of the top energy providers on the Choose Energy marketplace offer reliable and affordable no-deposit electricity plans in Texas. Enter your ZIP code above to see what is available in your area and use the filter feature to narrow down your results.

To learn more about cheap, no-deposit electricity plans in Texas, see our deposits guide.

Choose Energy is a 24/7 online marketplace where Texas residents can compare electric plans and rates from top providers such as TXU Energy, Gexa Energy, and Reliant Energy at no cost. We partner with trusted providers so you can be sure you’re getting reliable service. Let’s get started:

1. Enter your ZIP code above. We’ll show you today’s low electricity rates in your area. Compare plans and choose what’s right for you.
2. Sign up online or over the phone. Either way takes only minutes. Not sure what to choose or just want a little more guidance? Give one of our energy experts a call and they’ll be happy to help you.
3. Enjoy your new energy plan. Your new provider will work with your utility company to start your service with no interruptions. It’s as easy as that.

With so many providers on the market, it can be hard to tell the difference, let alone make an informed decision. To help with this, Choose Energy reviews the providers we work with so you can better understand the pros and cons of each company.

Using categories of customer service, online accessibility, and business history, we’ve assigned a score out of five, with individual scores in each category. Please read the reviews and learn more in our full ranking.

Texas electric rates change throughout the year depending on the season, demand, and other factors. The U.S. Energy Information Administration (EIA) tracks these changes monthly, shown in the chart below. The EIA’s most recent data is available through May 2021 and lists the average retail rate for electricity in Texas as 12.74 cents per kilowatt-hour (¢/kWh).

Rates are often lowest at the beginning and end of the year, and highest in the spring. If you become familiar with these trends and plan to buy during a market low, you may be able to find a lower rate.

How does Choose Energy make money?

The Choose Energy marketplace is free for you to use. Instead of charging customers to use our services, we are paid by the providers on our site when you enroll in an energy plan. Because of this, we can offer a wide variety of plans and affordable rates from top energy providers in Texas.

Why does Choose Energy run a credit check?

The providers we work with generally require us to run a soft credit check before to see if the required credit threshold is met and whether you will need to pay a deposit. Credit checks are a normal part of electricity shopping. We run a soft credit check – the kind that doesn’t affect your score. In addition, we only run it once. We’ll check your score against all of the providers on our marketplace so you can find the best rate and plan to fit your needs. See our deposits guide for more information about the credit check process.

How quickly can I start service?

If you are signing up for a new plan and have a smart meter installed at your home (most Texans do), you could be able to begin service the same day you sign up for your plan. If you are switching, the process could take up to five business days.

What should I do if my power goes out?

Your local utility company is in charge of restoring power in the event of a power outage. If you lose power, you will need to contact your utility, not your provider. To learn more about your utility company, continue scrolling to the utility section or visit our complete list of utility companies.

How much will I be charged for electricity?

Your monthly electric bill is determined by your electricity rate and the amount of energy you consume. When signing up for an energy plan, be sure to pay attention to the rate, the Electricity Facts Label (EFL), and the terms of your contract. It’s also important to know how to read your electricity bill. For a detailed walkthrough, see our guide to reading your bill.

If you’re experiencing a power outage, please contact your utility company. Otherwise, please visit our list of partners and providers to get in contact with your electricity supplier.

Choose Energy is rated 4.1 / 5 based on 176 customer reviews.

Updated: 7/31/2021